Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)The incremental IRR investment rule applies the IRR rule to the difference between the cash flows of the two mutually exclusive alternatives.
• B)When a manager must choose among mutually exclusive investments,the NPV rule provides a straightforward answer.
• C)The likelihood of multiple IRRs is greater with the regular IRR rule than with the incremental IRR rule.
• D)Problems can arise using the IRR method when the mutually exclusive investments have differences in scale.

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Definitions:

Primary Producer

Organisms, typically plants and algae, that produce organic compounds from carbon dioxide through photosynthesis, serving as a food source for other organisms in the ecosystem.

Plant

Multicellular organisms in the kingdom Plantae that use photosynthesis to make their own food, characterized by green pigmentation, cellulose cell walls, and reproduction via spores or seeds.

Secondary Consumer

An organism that feeds on primary consumers; typically a carnivore or omnivore that occupies the third trophic level in a food chain.

Decomposer

Organisms, such as bacteria and fungi, that break down dead organisms and waste materials, recycling nutrients in ecosystems.